Williams Cos. amends and restates $3.75 billion credit facility

Chicago, Oct. 8 – Williams Cos. Inc. amended and restated its credit agreement on Friday with Wells Fargo Bank, NA as administrative agent, according to an 8-K filed with the Securities and Exchange Commission.

The facility lists Northwest Pipeline LLC and Transcontinental Gas Pipe Line Co., LLC as borrowers, in addition to Williams.

Northwest and Transco have a borrowing sublimit of $500 million each.

The facility may be increased an additional $500 million from either new lenders or increased commitments from existing lenders.

Same-day swingline loans are available up to $200 million.

The five-year facility can be extended at the borrowers’ request for an additional one-year period up to two times.

Interest, based on ratings, will be between Libor plus 87.5 basis points and 162.5 bps. The commitment fee starts at 7.5 bps and goes up to 27.5 bps, also based on ratings.

The company is required to maintain a ratio of debt to EBITDA of not more than 5x, which can be increased to 5.5x if there is an acquisition greater than $25 million, for the fiscal quarter in which the acquisition occurs.

For Transco and Northwest, the ratio of debt to capitalization cannot be more than 65%.

The company reduced the size of its commercial paper program to $3.5 billion with the entry into the credit agreement.

Borrowings can be used for working capital, acquisitions, capital expenditures and other general corporate, partnership or limited liability company, as applicable, purposes.

Tulsa, Okla.-based Williams provides infrastructure for the delivery of natural gas products.

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